U.S. Supreme Court ruling on SEC and jury trials for securities fraud cases

SOURCE www.newsweek.com
U.S. Supreme Court rules that SEC must bring cases for securities fraud to federal court for a jury trial, invalidating its own in-house proceedings. Justice Sotomayor dissents, warning about the threat to separation of powers. Legal experts discuss the implications for administrative agency tribunals.

Key Points

  • SEC must bring cases for securities fraud to federal court for a jury trial
  • Sotomayor warns about the threat to separation of powers
  • Legal experts discuss implications for administrative agency tribunals

Pros

  • Ensures defendants' right to a jury trial in SEC cases involving civil penalties for securities fraud
  • Upholds the Seventh Amendment right to trial by jury in suits at common law

Cons

  • May complicate and slow down SEC enforcement actions against securities fraud
  • Raises questions about the balance of powers between branches of government